INTRODUCTION:

Ticket resale, commonly referred to as scalping or touting, has turned the entertainment industry into a Hunger Games arena where genuine fans often feel like tributes. With demand for live events soaring higher than a rock star’s high note, this practice of reselling tickets at sky-high prices leaves fans feeling like they’ve been hit with a double whammy. Thanks to digital technology and automated bots that purchase tickets in bulk within seconds, scalpers have turned ticket sales into all-out warfare.

These bots are sophisticated software programs designed to mimic human behavior, allowing scalpers to bypass security measures on ticketing websites. They can complete transactions at lightning speed, often buying up large quantities of tickets the moment they go on sale. This leaves genuine fans at a significant disadvantage, as they are unable to compete with the speed and efficiency of these automated systems. As a result, tickets for popular events are sold out within minutes, only to reappear on secondary markets at highly inflated prices. This digital arms race has transformed the ticket-buying experience into a frustrating and often futile endeavour for many fans. In the end, it’s a mix of frustration and high stakes deal, where instead of a happy ending, you may have the satisfaction of attending the event but left with an empty wallet.

THE EVOLUTION OF SCALPING

Back in the day, ticket scalpers had to break a sweat, lining up outside cinemas, sports stadiums and railway stations. Buying tickets like they were collecting rare Pokémon cards. These were the golden days of elbow grease and strategic queuing. But times have changed! Now these modern-day ticket wizards operate digitally, wielding automated bots that snatch up tickets faster than you can say ‘clickbait.’ Leaving the true fans shaking their head in frustration here the tickets are sold out within minutes! Gone are the days of old-school scalping, welcome to the era of the digital ticket heist, where getting your hands on that coveted concert ticket feels like trying to catch a greased pig at a county fair.

For instance, during the recent ticket sale for Coldplay’s concert in Mumbai, over 1.3 crore fans competed for just 1.5 lakh tickets, resulting in a complete sell-out within 30 minutes. Tickets were originally priced between INR 2,000 and INR 35,000. It was like playing musical chairs on hyperdrive, where the lucky few who grabbed a ticket did a victory dance, while the rest were left scratching their heads, wondering if they should have invested in a teleportation device instead. Those resale prices? They’re so high, you might as well book a trip to the Maldives and serenade yourself with Coldplay tunes from a beach hammock! It’s like the scalpers are playing a cheeky game, snickering from behind the curtains as they watch the chaos unfold.

WHY FANS BUY FROM SCALPERS

The phenomenon of Fear of Missing Out (FOMO) plays a crucial role in the scalping market. When fans are eager to attend an event, emotions can override rational decision-making. The scalpers are like mischievous magicians, using bots to buy tickets in bulk as soon as they go on sale, and then pulling these tickets out of thin air, waving them tantalizingly in front of desperate fans. These fans transform into frantic bidders in an auction they never signed up for. The prices can skyrocket so high that you’d think they were selling VIP tours to Mars instead of concert seats. It’s a game where the scalpers are the cunning wizards, and the fans are spellbound by the magic of “last chance” tickets. I hope fans realise spending unnecessary extra money on a single night of music concerts.

LEGAL LANDSCAPE IN INDIAN CONTEXT

The legal framework surrounding ticket scalping in India is fraught with ambiguity. This ambiguity often leaves consumers unprotected and vulnerable to exploitation. In a landmark case Mandeep Singh v. Union Territory of Chandigarh & Ors. The Punjab and Haryana High Court acquitted Singh on allegations of cricket match tickets reselling at inflated rates, underlining the issue. The court ruled that since both buyer and seller were aware of the transaction, no fraud had occurred, exposing significant loopholes in Indian law.

Ticket scalping has become a significant issue in India, particularly highlighted by controversies surrounding the sales of tickets for high-profile concerts, such as those by Coldplay and Diljit Dosanjh. In the Coldplay Concert Controversy, a Public Interest Litigation (PIL) was filed in the Bombay High Court seeking stringent guidelines to combat black marketing and ticket scalping during the sale of tickets for Coldplay’s concert scheduled for January 2025. The PIL, submitted by advocate Amit Vyas, alleges that many fans faced irregularities during the ticket sales on BookMyShow, with reports of users being logged out before they could purchase tickets. This led to tickets originally priced at INR 2,500 being resold for over INR 30,000 on secondary markets. The petition claims that automated bots were used to purchase tickets rapidly, leaving genuine fans without access. It urges the court to establish comprehensive guidelines to prevent such practices and protect consumer rights. The Mumbai Police’s Economic Offences Wing is investigating these allegations.

Similarly, during the sale of tickets for Diljit Dosanjh’s ‘Dil-luminati’ tour, fans reported paying as much as INR 80,000 for tickets originally sold for INR 9,000. This incident also prompted legal scrutiny, with the Delhi High Court initiating inquiries into ticket-scalping activities related to this concert. Authorities are increasingly recognizing the need for robust regulations to protect consumers from exploitation by scalpers. The recent uproar over ticket scalping in India underscores the urgent need for effective regulatory measures to safeguard consumers during high-demand events. It’s like trying to play a fair game of Snakes and Ladders, but the scalpers keep adding more snakes!

Authorities are increasingly recognizing the need for robust regulations to protect consumers from exploitation by scalpers. The recent uproar over ticket scalping in India underscores the urgent need for effective regulatory measures to safeguard consumers during high-demand events.

The ongoing legal actions and proposed guidelines reflect a growing awareness of the challenges posing automated ticket-purchasing systems and the exploitation of fans.

Imagine the world of ticket buying as a game of Snakes and Ladders. Fans eagerly climb the ladders of hope and excitement, inching closer to their much-desired tickets. Just when they think they’ve made it, they hit a snake—those pesky scalpers who slide in with their inflated prices, sending fans tumbling back down the starting point of the board. It’s a tricky game where the ladders of legal protection are often too short, and the snakes of scalping are way too long.

While fans are busy rolling the dice, hoping for that perfect number to land them a ticket, scalpers are already strategizing their next move, ready to send everyone spiralling back down. It’s a nostalgic game with a modern twist, where winning feels like pure luck and losing means emptying your pockets.

Penalties for Ticket Scalping in India have no specific anti-scalping law currently exists. However, existing laws can be applied in certain cases (e.g., Consumer Protection Act). Potential penalties under the Bharatiya Nyaya Sanhita 2023 for organized crime or fraud related to scalping activities. Recent developments include proposed measures by the Maharashtra Cyber Department to implement name-based ticketing and ID verification starting December 15, 2024, aimed at curbing scalping practices.

In response to the growing concerns over ticket scalping, particularly during high-profile events like Coldplay’s concert, a Public Interest Litigation (PIL) was filed in the Bombay High Court seeking comprehensive guidelines to curb black marketing and ticket scalping practices. The petition highlighted irregularities during online sales, alleging that automated bots manipulated ticket availability, leading to inflated resale prices.

The Maharashtra Cyber Department has announced new guidelines set to take effect on December 15, 2024. These measures include name-based ticketing and government ID verification to enhance accountability and curb scalping practices. Such initiatives signal a proactive move towards addressing these challenges.

TACKLING SCALPING WORLDWIDE

Ticket scalping is not just an Indian problem; it is a global phenomenon with various countries adopting different approaches to combat it:

• United States: The BOTS Act of 2016 prohibits bots usage for ticket purchases but lacks comprehensive federal legislation outright banning ticket resale. States like New York require resellers to obtain licenses. While the BOTS Act has reduced bot activity, the lack of comprehensive federal legislation means scalping still persists.
• Australia: In New South Wales, illegal reselling of tickets for more than 10% above their original price.
• European Union: In 2019, the EU banned bot usage for ticket purchases after pressure from artists and event organizers.
• United Kingdom: Since 2018, using bots to buy tickets has been illegal; even purchasing from a scalper can lead to fines in some areas.
• Other Countries: France and Japan have laws penalizing ticket scalping with varying degrees of enforcement.

These measures reflect a growing recognition of the need for regulatory frameworks that protect consumers while addressing the complexities of digital ticket sales.

CALL FOR A CHANGE

As ticket scalping continues to evolve alongside technology, it presents an ongoing challenge for consumers and regulators alike. While countries like the US and UK are making strides toward curbing these practices, India’s legal framework remains inadequate in addressing the nuances of digital scalping. To safeguard fans/consumers from exploitation and provide equitable access to events, India has to enact stringent regulations that explicitly target ticket scalping. This includes establishing clear guidelines regarding resale practices and enhancing consumer awareness about their rights. As we move into an increasingly digital age, it’s time for lawmakers to step up and give scalping the boot, because fairness should never come with an inflated price tag.

Key Measures Proposed:

1. AI-Based Solutions: The Cyber Cell suggests deploying AI-driven firewalls to distinguish between human users and bots, which are often used by scalpers to hoard tickets. A waitlist system is also proposed to ensure fair ticket distribution among buyers. AI-based solutions, such as machine learning algorithms, can analyze purchasing patterns to detect and block bot activity.
2. Name-Based Ticketing: Starting December 15, 2024, name-based ticketing will be mandatory for events expected to sell out. It requires the ticket holder’s name to be printed on the ticket or embedded in a QR code, which must be verified against a government-issued ID at the event.
3. Monitoring and Reporting: Ticketing platforms are advised to analyze purchasing patterns, such as repeated use of the same mobile numbers or payment methods, and report any suspicious activities to law enforcement.
4. Enhanced Security Measures: The initiative includes deploying undercover personnel at events to identify scalpers, improving queue management, and conducting random ID verifications of attendees. Additional recommendations include using dynamic QR codes and tamper-proof entry bands to ensure ticket authenticity.
5. Comprehensive Guidelines: The directives should not be limited to BookMyShow but extend to all major ticketing platforms like Zomato Live and Paytm Insider. Those measures aim to increase accountability and prevent unlawful resales, ensuring that tickets only get through approved clients.
6. Undercover Operations: The Cyber Cell recommends deploying undercover personnel venues to identify and report scalpers engaging in illegal ticket sales.
7. Random ID Verification: Conduct random checks of attendees’ government IDs against their tickets to ensure authenticity and ownership, which will help deter scalpers from reselling tickets.
8. Dynamic QR Codes and Tamper-Proof Bands: Using dynamic QR codes that refresh periodically will make it more difficult for scalpers to duplicate tickets. Additionally, tamper-proof wristbands will be utilized for entry at high-demand events
9. OTP-Based Verification: Sending one-time passwords (OTPs) to attendees can confirm legitimate bookings and secure the ticketing process against illegal access.
10.  Mandatory verification of third-party sellers. Transparency requirements for ticket sales. Prohibition of practices that manipulate consumers and other methods.

CONCLUSION

The current landscape of ticket scalping in India reflects a growing concern among consumers and regulators alike. With major events drawing large audiences and significant interest, the exploitation of fans through inflated ticket prices has prompted legal action and proposed regulatory measures curbing these practices. Introducing guidelines such as name-based ticketing and government ID verification marks a proactive step towards addressing these issues effectively.

As technology evolves, lawmakers and regulatory bodies must establish comprehensive legal frameworks targeting ticket scalping while ensuring consumer protection remains a priority. The ongoing developments indicate the need for robust measures to safeguard fans against exploitation in an increasingly digital marketplace.

Sources

1. Ticket scalping: When prices soar and fans suffer, by (AOR) Vivek Narayan Sharma. https://timesofindia.indiatimes.com/blogs/lawtics/ticket-scalping-when-prices-soar-and-fans-suffer/   [The times of India, September 30, 2024]
2. ANM Global – “Understanding the Legal Framework Around Ticket Scalping in India” https://anmglobal.net/understanding-the-legal-framework-around-ticket-scalping-in-india/ [November 15, 2024]
3. Parinam Law Associates – Ticket to (Jail)? – Addressing Ticket Scalping in India, By Pooja Tidke and Rhea Rao. https://www.lexology.com/library/detail.aspx?g=d33dfb5a-f3e1-4b6b-a69a-c4eac07cffef [November 25 2024]
4. Economic Times – “PIL filed in HC seeks guidelines against black marketing, ticket scalpinghttps://economictimes.indiatimes.com/news/india/coldplay-concert-ticket-drama-pil-filed-in-bombay-high-court-heres-what-petitioner-is-demanding/articleshow/114422588.cms?from=mdr ” [ET Legal World, October 21, 2024]
5. Maharashtra Cyber Police on Ticket Scalping: Name-Based Ticketing to Be Enforced, By Ishaan Negi https://techstory.in/maharashtra-cyber-police-on-ticket-scalping-name-based-ticketing-to-be-enforced/  [TECHSTORY, November 25, 2024]